Profits slide at Schwarz Pharma

German drugmaker Schwarz Pharma says its first-quarter 2001 salesincreased 6.4% to 177.2 million euros ($157.7 million), boosted by favorable exchange rates, notably that of the US dollar. Without this positive impact, sales grew 4%. However, operating profit for the quarter collapsed to 1.1 million euros compared with 10 million euros for the like, year-earlier period, while net income was 4.4 million euros, down 38.9%.

The company said that the latter declines were principally due to new product launches and expanding field forces in Germany, Spain and the USA, which led to an increase in sales and general administration expenses of 20.2% to 82.6 million euros. Schwarz' R&D spend for the quarter rose 35.3% to 21.1 million euros and, for full-year 2001, is due grow 20%.

"Good start to 2001," says CEO